The real estate market will continue to present us with incredible opportunities in the next several months; there are a lot good news and bad news, the good news are really for investors, first time buyers, actually, for anyone looking to buy real estate, either as an investment or as a primary residence.

Unfortunately, investing in real estate, is not different than investing in anything else, the better business opportunities will always go to savvy buyers, who are always looking for these deals. None cant just get up one morning and decide, I want to be a real estate investor, it takes more that that, it is necessary to have a good understanding of the underlying variables that determine the state of real estate market.

In this market, more than any others, it is very powerful to have cash available to close business transactions in short notice, many good real estate deals go to investors who are willing to pay cash, close quickly and buy properties in as is condition.

It is very important to understand who the real estate seller is, pretty much there are 3 kinds of sales and sellers, we will look at them next:

Private Sellers: This are the folks who owned property and are trying to sell but do not really have to sell, they would like to sell their property for a competitive price, usually these folks have small mortgages or no mortgages, they have equity in their homes, they might be trying to sell right now, but can wait until the market improves and prices become more stable or start going up again. Sometimes, these seller are not very negotiable, sometimes, they understand the current situation and are willing to sell at prices competitive with other properties, including short sales and REO's.

These properties are usually good for first time buyers, they are easier to finance, most of the times, everything is in working order, and if it is not, the buyer can request that the seller fixes anything as needed prior to closing.

Short Sales: Sometimes, property owners fall behind in their mortgages, the bank that gave these owners the loan to buy the property have a couple of options, one of them is to foreclose, another is for the owner to return the deed and keys, and yet another is to sell the property at a lost, forgive the current owner the difference between the sale and the current mortgage and move forward. This is called a short sale, it is almost the same as buying an REO, the only difference is that this properties are usually in habitable conditions, often, the owners are still living there and keeping up with the property.

REO's: These are properties that have been foreclosed, very good deals can be had in this segment of the market, however it is very competitive, often it requires to have cash readily available to close in short notice, and it also requires that the buyer knows what he is buying and what he would need to do to get these properties ready to rent or sell in the near future. Some investors buy this properties at a discount, if the properties need work or improvements, they do what is needed, then, they rent them and sell them at a profit.

At Newport Real Estate we are looking for folks who need help, if you or anyone you know is having trouble affording their mortgage or facing foreclosure, there are options, and we can help. Call for a free consultation.

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